Lesson 25 of 42 · Part I · Level 2 · Explained
Acquiring banks: card payments and e-commerce sales
When a foreign customer pays a Bangladeshi IT firm by international credit card on its website, an AD may act as the "acquiring bank" that brings the money home. The six conditions in I-1, and how I-2 opens the same service to goods sold through cross-border e-commerce.
In Lesson 24, Other service exports, deadlines and money kept abroad, we learned that service earnings must come home just like goods earnings, and that keeping them abroad, even in crypto, breaks the law. Lesson 24 also pointed forward: Part-I of the circular explains the allowed ways to bring that money home. Welcome to Part I.
Nabila, who owns a software firm in Dhaka, has a new plan. Instead of sending invoices and waiting for transfers, she wants foreign customers to buy her software straight from her website. "They click 'Buy', type their card number, done. Like ordering a pizza, but the pizza is an accounting app," she says.
In the same queue at the AD branch stands Tasnim, who runs a small online shop in Rajshahi. She sells handmade nakshi kantha and jute bags to buyers abroad. "My buyers want to pay by card too. Can the bank help me?"
Eliana, the export desk officer, has handled freelancers and software firms before, but card payments are new to her. So she has asked Shirin to join her. Shirin spent 35 years in banking, ran trade and foreign exchange at a large bank, and now trains bankers. Shirin smiles. "Card money does not fall from the sky into a Taka account. Some bank has to catch it. Under Part I, that bank can be yours. Let's see how." This lesson covers acquiring services for IT/software firms (I-1) and for goods sold through cross-border e-commerce (I-2).
In plain words
IT/software firms can already send their products abroad through the internet or other electronic media. I-1 adds a second door: they may sell their products/services to customers abroad through web/internet, for example on their own website.
For this web-based trade, ADs may work as 'Acquiring Banks'. In simple words, the acquiring bank is the bank on the seller's side that receives the internet payments made by international credit card and passes the money to the seller. The seller here must be an IT/software firm registered and operating in Bangladesh. Note the word "may": it is a permission, not a duty. The AD must meet these conditions:
(a) Merchant agreement. The AD must have a merchant agreement with the beneficiary. The beneficiary must have the necessary approval from the competent authorities and necessary arrangements for safe internet transactions. The circular doesn't name the authorities.
(b) Business fit. The AD must be satisfied that the online payment is relevant to the nature of the beneficiary's business.
(c) Paying the firm. The card money first comes into the AD's nostro account. The AD then makes it available to the beneficiary's account on receipt of a duly filled Form-C (if applicable). The beneficiary's ERQ account may be credited from the total payment up to the permissible limit, if the transactions deserve such credits. I-1 doesn't state that limit, or say when Form-C is "applicable".
(d) Part-H rules. The AD must follow paragraph 2, Part-H. These are the conditions from Lesson 23: check the deal and the person, Form-C, secure channels, taxes, due diligence and records.
(e) Records. Keep records of the transactions, with documentary evidence supporting each payment.
(f) Laws and reports. Follow the rules on foreign exchange, AML/CFT, Payment and Settlement Systems and other relevant laws, and report the transactions to Bangladesh Bank in the monthly returns, in the relevant schedules/statements. Note: Part L of the same circular (L-6, Lesson 33) says Form-C and Form-C (ICT) stand discontinued, and that until banks' secure digital interfaces are ready, the purpose and supporting information are collected through banks' existing digital channels. The original circular is always the final word.
At the desk
Nabila's firm wants Eliana's bank to collect card payments from her website. Eliana first checks that the firm is registered and operating in Bangladesh, has the needed approvals and uses a secure payment page, and then signs a merchant agreement. When USD 2,500 of card sales reaches the bank's nostro account, she takes the Form-C where it applies, credits the ERQ share within the permissible limit and the rest to the firm's account, and files the payment evidence. Shirin nods. "A merchant agreement is a promise on both sides. Keep the papers, and the promise keeps you safe."
Key words
- Acquiring bank
- The bank on the seller's side that receives card payments made over the internet and passes the money to the seller. Under I-1, an AD may act as one for IT/software firms.
- Merchant agreement
- A written agreement between a bank and a seller (the "merchant") under which the bank receives card payments for the seller.
- International credit card
- A credit card that a customer can use to pay across borders, for example to buy from a Bangladeshi website from abroad.
- Nostro account
- A bank's own account, in foreign currency, held with a bank in another country.
Read the rule as written (Para I-1)
In addition to transmission of IT enabled products through internet, or other electronic media, IT/Software exporting firms may sell their products/services to customers abroad through web/internet. In the context of web based trade, ADs may work as 'Acquiring Banks' for realization of internet/web generated payment through International Credit Card favoring IT/Software firms registered and operating in Bangladesh subject to compliance with following terms and conditions:
(a) ADs shall have merchant agreements with the beneficiaries having necessary approval from the competent authorities and necessary arrangements for safe internet transactions;
(b) ADs shall have to be satisfied that online payment is relevant to the nature of business of the beneficiaries;
(c) ADs shall make the payment, credited to their nostro accounts, available to beneficiaries' accounts on receipt of Form-C (if applicable) duly filled in from the beneficiaries. The ERQ accounts of the beneficiaries may be credited to the extent of permissible limit from the total payment provided that the transactions deserve such credits;
(d) ADs shall comply with the instructions contained in paragraph 2, Part-H of this circular;
(e) ADs shall keep records of the transactions with documentary evidence in support of the payment; and
(f) ADs shall have to comply with the applicable regulations of foreign exchange transactions, AML/CFT, Payment and Settlement Systems and other relevant laws/regulations in force and report the transactions with monthly returns to Bangladesh Bank in the relevant schedules/statements.
Source: Bangladesh Bank, FEPD-1 Circular No. 26, 30 July 2026, Part I, paragraph 1 (page 34). The original circular is the authority.
Repatriation of proceeds against export traded under E-Commerce
In plain words
I-1 was about software and IT services. But what about Tasnim's nakshi kantha? You can fold it and post it. It is a good, not a service.
I-2 covers exactly this. ADs may enter into merchant agreements with eligible exporters to give them an 'Acquiring Service'. The service helps them repatriate export proceeds that:
- are received through ICC on the internet;
- are paid against sales of exportable goods; and
- come from sales concluded on a web platform under cross-border E-Commerce.
What does "ICC" mean here? Read with I-1, it is best taken as international credit card, the same payment channel. This is a reading, not something the circular spells out, but it is unlikely to mean the International Chamber of Commerce from the LC lessons.
Again the word is "may": the AD may offer the service; it is not forced to.
What I-2 does not say. It doesn't explain who counts as an "eligible exporter", what documents are needed or what limits apply. It simply says the details of the transaction are outlined in paragraph 1, Part-J of the circular. Part-J is not covered in this lesson, so for now, remember the pointer and don't guess the details.
A simple way to remember the two paragraphs: I-1 is for bytes (software and IT services); I-2 is for bags (goods sold online).
At the desk
Tasnim asks Eliana whether her bank can collect card payments for the jute bags her Rajshahi shop sells to buyers abroad through its website. Eliana explains that under I-2 an AD may enter into a merchant agreement with an eligible exporter to give an acquiring service for goods sold on a web platform under cross-border e-commerce. Shirin adds, "I-2 opens the door. The details, including who is eligible, are in paragraph 1, Part-J, so we will check that part before we sign anything."
Key words
- Cross-border e-commerce
- Buying and selling across countries through a website or other online platform, with the deal made online.
- Acquiring service
- The service an acquiring bank gives a seller: accepting card or digital-wallet payments that customers make, online or in shops, and bringing the money to the seller's account.
- Repatriation
- Bringing export money back into Bangladesh through a bank.
Read the rule as written (Para I-2)
ADs may enter into merchant agreements with eligible exporters to provide 'Acquiring Service' in repatriating export proceeds received through ICC on internet against sales of exportable goods concluded on web platform under cross border E-Commerce. Details of the transaction are outlined in paragraph 1, Part-J of this circular.
Source: Bangladesh Bank, FEPD-1 Circular No. 26, 30 July 2026, Part I, paragraph 2 (page 34). The original circular is the authority.
Putting it together
So far: under I-1, an AD may act as an acquiring bank for internet payments by international credit card to IT/software firms registered and operating in Bangladesh. It needs a merchant agreement with an approved firm that has safe internet arrangements, a payment that fits the firm's business, a Form-C where applicable, an ERQ credit only within the permissible limit, the Part-H paragraph 2 conditions, proper records, compliance with foreign exchange, AML/CFT and payment-system rules, and monthly reports to Bangladesh Bank. Under I-2, ADs may also give an acquiring service to eligible exporters of goods sold online under cross-border e-commerce, with the details in paragraph 1, Part-J.
Next: Lesson 26, Online payment gateways and cards for service income.